Monday, April 30, 2012
President Obama Speaks on American Infrastructure: Someone we could've used three years ago
There's a growing consensus at least amongst Democrats and perhaps the country as a whole. Even Mitt Romney at one point supported new Infrastructure Investment. To rebuild the country and put people back to work, before he checked the latest weather report. That we need to rebuild the country and do it for a few reasons. The Core of Engineers has estimated that we need around 1T$ in Infrastructure Investment. To prevent things like the damage form Hurricane Katreena from happening again. And to prevent bridges from collapsing, which happened in Minnesota back in the summer of 2007. So we have newer roads, better roads, less Traffic Congestion, people spending less time in Traffic. Expanding airports, improving airports, building new schools, rebuilding new schools. Infrastructure Investment is one of the things that FDR got right with his New Deal back in the 1930s. Plus all of the well paid jobs that would come from Infrastructure Investment. All the Construction Companies it would hire, all the unemployed Construction Workers it would put back to work.
Infrastructure Investment is exactly that, your investing in the country, building things that we all use. Hiring Private Companies to do the work, who hire its workers to do the jobs. And we all use the roads, buildings, bridges, airports, schools etc. And they all pay for themselves to keep up with repairs etc. Barack Obama becomes President in January, 2009 in the heart of the "Great Recession". The Minnesota Bridge Collapse, happens roughly eighteen months before, Hurricane Katreena happened a little over three years before. The economy is tanking at negative 7%, we are losing 700K jobs a month. President Obama calls for a stimulus of 800B$. Acknowledging the need for Infrastructure Investment, they had already acknowledged that they were going to have to borrow the money to pay for it.
My point being if your going to borrow around 1T$ and thats before interest. Why not go all out, borrow what it takes to put these people back to work. Instead of spending 40B$ in Infrastructure Investment, how about ten times that. Along with the Middle Class Tax Relief and State Aid. The American Recovery Act as it was designed to do, which was basically to stop the bleeding. Of the "Great Recession", worked we were out of Recession by the summer of 2009. But it could've been a lot better and maybe we are not looking at 8.2% Unemployment today.